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A conclusion to the tripartite negotiations, on the first
incomes policy agreement in the new millenium, for the years 2001 and 2002 has finally
been reached. Pay increases, along with an index clause, will ensure a rise in the real
income of employees and hence their purchasing power. This agreement will stabilise the
economy and curtail inflation, which is particularly important from the perspective of
those in the low or middle income brackets.This
negotiated solution will ensure the continued growth of the national economy and the
positive development of the rate of employment. The incomes policy agreement will enable
the creation of some 40,000 to 50,000 new jobs in each of the years 2001 and 2002, and
will lead to an employment rate of 70% by the year 2003. It will thus be a further step
towards full employment.
At the early stages of these negotiations, the employers
had endeavoured to pass on to the employees the cost of the entire range of the price
increases which have arisen from the two factors of higher fuel costs and the falling
euro. Further, the employers also wanted to abandon the jointly agreed pay structure and
thus reap for themselves the whole of the benefits which have ensued from increased
productivity and the strong growth in the national economy. All these matters contributed
to the negotiations being exceptionally tough. Even in the final stages there was still a
difficult struggle to be faced, in order to secure a schedule of pay increases which would
favour the low-paid.
The solution that has now been achieved is based on
solidarity. The general pay increase is to be calculated in cash terms, whilst an equality
allowance, with its focus on the low-paid, has been included in the agreement. The tax
concessions, which are linked to the agreement and which will be implemented in 2002, also
favour those in the lower and middle income brackets. There is also a trade union related
allowance which will provide flexibility for solving any sectoral problems.
There are, in this incomes policy draft agreement,
significantly more substantial proposals for the improvement of the quality of the working
world than was the case in 1996 and 1997. The agreement contains a variety of important
features which will be of benefit to the members of the SAK affiliated unions.
For the first time in a decade there is to be an increase
in the rate of unemployment benefit. The earnings-related element in unemployment benefit,
which was reduced to 42% by the government of Prime Minister Aho, will now revert to the
earlier figure of 45%. Annual working time will be shortened, as the Saturday following
Ascension Day will become a national non-working day with full pay. Further measures will
be taken for the alleviation of the pressure which is caused by excessive workloads, for
the reconciliation of the demands of both work and family life and for an increase in the
opportunities for further vocational education. The SAK goal, of achieving a fair and
humane world of work, will become substantially closer by means of this agreement.
Job-sharing schemes have proved to be successful and these
will therefore be continued. The third stage of the training insurance system will be
implemented and the number of available training places within the system will be
increased. Improvements will be made to the terms of the second stage in order to
facilitate the enrolment for study by the unemployed. Advances will be made in the
planning for training and manning at company level.
The extension of sick pay, along with access to
occupational healthcare services, to workers on short-term contracts will be examined.
Both parties will draw up a joint recommendation for minimum working hours, which will be
particularly important for the service sector workers, most of whom are women.
There will be an improvement in the position of union
representatives at the workplace. The remuneration of shop stewards will be increased and
additional time will be allocated to health and safety representatives in order to enable
them to additionally cover issues which are connected to mental health at work. A review
of staff funds legislation will be commenced.
We are at present about to arrive at the first incomes
policy agreement since the adoption of the euro. Pay increases in 2002 will be both
calculated and paid in euros. Should this single currency begin to gain strength, as is
generally forecast, any inflationary pressures will be lessened. If this turns out to be
the case, the improvement in purchasing power as set out by the current incomes policy
agreement, might be even greater than had been anticipated.
Helsinki, 17th November 2000
Lauri Ihalainen
The President of SAK |
